Half Liang Finance | Industry's First! E Fund Wealth Achieves Zero Fund Advisory Sales Commissions, Public Fund Fee Rate Reform Accelerates Again

On January 1st of this year, the “Regulations on the Management of Sales Expenses for Publicly Offered Securities Investment Funds” officially came into effect, marking a substantive step forward in the reform of sales fee rates for mutual funds. During the transition period of the new regulations, the industry welcomed its first major benefit initiative. On May 11th, leading public fund manager E Fund’s wealth management platform, E Wealth, officially launched a full rebate of client maintenance fees for investment advisory services, becoming the first domestic institution to achieve a “zero commission” sales model for investment advisory services. This set a new benchmark for fee marketization reform and a return to the core service of investor focus in the mutual fund industry.

This rebate initiative by E Wealth precisely targets the core link of fund advisory services, transferring all client maintenance fees generated by this business directly to investors. Client maintenance fees are a key hidden commission in fund sales, historically deducted from fund assets and paid by fund companies to sales channels, indirectly reducing investors’ actual returns. By fully eliminating these commissions, investors are directly exempted from this sales cost, effectively lowering the overall cost of fund advisory services, allowing investors to genuinely enjoy the benefits of industry reform, and further enhancing their investment experience.

As a leading professional wealth management platform under a top public fund manager, E Wealth has taken the lead in breaking the traditional commission-based profit model in the industry, actively responding to new sales expense regulations and practicing inclusive finance. The core purpose of the new fund sales expense regulations is to standardize industry sales charges, curb the chaos of heavy marketing and light service, and promote the transformation of the wealth management industry from a traditional commission-driven model to a value-driven model centered on professional advisory services and asset allocation. E Wealth’s pioneering efforts demonstrate the industry’s responsibility in proactively offering benefits and prioritizing investor interests.

In recent years, the public fund industry has continuously deepened fee rate reforms, from reducing management and custody fees to standardizing sales expenses. A series of policies and institutional actions have consistently focused on reducing investors’ investment burdens and cultivating long-term investment concepts. Industry insiders point out that the zeroing of sales commissions for advisory services is not merely a simple cost reduction but a profound transformation of the industry development model. It will fundamentally break the channel’s reliance on commissions for profit, forcing the entire industry to focus on core service capabilities such as research, investment guidance, and risk management, and promote a shift from “selling products” to “providing services.”

Text / Beijing Youth Daily Reporter Zhu Kaiyun

Editing / Wang Haozhou